Identifying Federal, State, & Local Taxes

Federal Tax Information

All businesses are subject to taxation by the Federal Government. Most businesses must apply for a Federal Employment Identification Number (EIN) from the Internal Revenue Service. A business owner must also withhold Federal Income Tax and Social Security taxes from his/her employees as well as contribute the employer’s share of Social Security and Federal Unemployment Taxes. For more information, visit the Internal Revenue Service website.

State Tax Information

All companies doing business in Virginia must register with the Virginia Department of Taxation for all taxes that may apply to the operation of the business. To register, complete a Combined Registration Application Form (PDF).

For more information on all taxes that may be applicable to your business as well as the required forms, please contact the Virginia Department of Taxation (select Businesses tab) or 804-367-8037.

Local

In addition to Federal and State taxes and the business and professional license fee, there are taxes that are assessed at the local level which include real estate taxes, business tangible personal property taxes, and sales and use tax (which are imposed at both the state and local level).

Additional Information

For more information on local taxes, please contact the Commissioner of Revenue’s Office at 540-775-4664. Restaurants will need to complete a meals tax registration form and pay meals taxes on a monthly basis. Hotels and motels will need to complete a transient tax registration form and pay transient taxes on a monthly basis. All forms are available online..

Recommendations

It is strongly recommended that you consult an accountant for precise advice relevant to taxes and your business.